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E1-9 (Algo) Calculating Costs [LO 1-4] Cartwell Inc
E1-9 (Algo) Calculating Costs [LO 1-4]
Cartwell Inc. makes picture frames which are sold in a local retail store and through various websites.
its
Wood for frames $10,500
eBook Rent for retail store 3,100
Depreciation on office equipment 420
Print Assembly worker wages 2,050
CEO's salary 3,550
eferences Glue and nails 250
Online sales commissions 1,500
Glass for frames 4,200
Depreciation on factory equipment 650 .
Factory utilities 400
Stain for frames 450
pS
Required: ;
1. Determine the cost of direct material.
2. Determine the cost of direct labor.
3. Determine the cost of manufacturing overhead.
4. Determine the total manufacturing cost.
5. Determine the total period cost.
6. Determine the total variable cost.
7, Determine the total fixed cost.
8. Determine the total prime cost.
9. Determine the total conversion cost.
Expert Solution
| 1. Cost of Direct Materials | |
| Wood for frames | 10500 |
| Glass for frames | 4200 |
| Cost of Direct materials | 14700 |
| 2. Cost of Direct Labor | |
| Assembly Worker wages | 2050 |
| 3. Manufacturing overhead: | |
| Glues and nails | 250 |
| Depreciation on factory equipment | 650 |
| Factory utilities | 400 |
| Stain for frames | 450 |
| Manufacturing overhead | 1750 |
| 4. Total manufacturing cost | |
| Direct material | 14700 |
| Direct labor | 2050 |
| Manufacturing overhead | 1750 |
| Total manufacturing cost | 18500 |
| 5. Total Period cost: | |
| Rent for retail store | 3100 |
| Depreciation on office equipment | 420 |
| CEO's salary | 3550 |
| Online sales commission | 1500 |
| Total period cost | 8570 |
| 6. Total Variable cost: | |
| Wood for frames | 10500 |
| Glass for frames | 4200 |
| Assembly worker wages | 2,050 |
| Glues and nails | 250 |
| Factory utilities | 400 |
| Stain for frames | 450 |
| Online sales commission | 1,500 |
| Variable cost | 19350 |
| 7. Total Fixed costs | |
| Depreciation on Factory Equipment | 650 |
| Rent for retail store | 3100 |
| Depreciation on office equipment | 420 |
| CEO's salary | 3550 |
| Total Fixed cots | 7,720 |
| 8. Total prime cost: | |
| Direct material: | |
| Wood for frames | 10500 |
| Glass for frames | 4,200 |
| Direct labor: | |
| Assembly worker wages | 2,050 |
| Total prime cost | 16,750 |
| 9. Total conversion cost: | |
| Direct labor: | |
| Assembly worker wages | 2,050 |
| Manufacturing overhead | 1,750 |
| Total conversion cost | 3,800 |
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